Record annual ore production and sales reflected a full year contribution from the GEMCO Expansion Phase 1 project in Australia. Record annual sales were also achieved for manganese alloy as the business intensified its volume maximizing strategy.

Underlying EBIT remained largely unchanged at USD 697 million as stronger volumes and prices were offset by higher costs. Notably, controllable costs remained largely unchanged during the period, although the combined impact of a weaker US dollar and inflation reduced Underlying EBIT by USD 186 million. Average realized ore and alloy prices increased by 9 per cent and 7 per cent respectively during the 2011 financial year.

After the successful commissioning of the GEEP1 project, the partners have approved the next phase of expansion that will confirm GEMCO's status as the world’s largest and lowest cost producer of manganese ore.

The USD 167 million (BHP Billiton share) GEEP2 project will increase GEMCO's beneficiated product capacity from 4.2 million tonnes per annum to 4.8 million tonnes per annum (100 per cent basis). In addition, road and port capacity will increase to 5.9 million tonnes per annum, creating 1.1 million tonnes per annum of latent capacity for future expansion.